TOPIC : TRANSFER’S

AND PROMOTION’S
TRANSFERS

 EMPLOYEE TRANSFER. ... It is lateral

movement of employee in an
organization by the employee.
“A transfer involves the shifting of an
employee from one job to another
without changing the responsibilities
or compensation”.Transfers of
employees are quite common in all
organizations
A transfer refers to lateral movement of employees
within the same grade, from one job to another.
According to Flippo “a transfer is a change in the job
(accompanied by a change in the place of the job) of an
employee without a change in responsibilities or
remuneration”.

NEED
The need for making transfer is left for various reasons
as listed below:
1. To Meet Organisational Needs:
Changes in technology, volume of production, production
schedule, product line, quality of products, organisational
structure, etc. necessitate an organisation to reassign jobs
among employees so that right employee is placed on the
right job.
2. To Satisfy Employee Needs:
Employees may request for transfer in order to satisfy their
desire to work in a particular department, place and under
some superior. Personal problems of employee like health,
family circumstances, and interpersonal conflicts may also
necessitate transfer.
 3. To Better Utilize Employee:
When an employee is not performing satisfactorily on
one job and management thinks that his/her capabilities
would be utilized better elsewhere, he/she may be
transferred to other job.
4. To Make the Employee More Versatile:
In some organisations like banks, employees after working
on a job for a specified period are transferred to other job
with a view to widen their knowledge and skill and also
reduce monotony. This is also called ‘job rotation.
 5. To Adjust the Workforce:
Work force can be transferred from the
departments / plants where there is less
work to the departments/plants where
more work is.
6. To Provide Relief:
Transfers may be made to give relief to
the employees who are overburdened or
doing hazardous work for long period.
7. To Punish Employee:
Management may use transfer as an
instrument to penalize employees who
are indulged in undesirable activities. As a
disciplinary action, employees are
transferred to remote and far-flung areas.
 POLICY
Transfer involves costs as well.
Therefore, every organisation should
have a just and impartial transfer
policy for its employees. Transfers
should then be affected according to
such policy only. In fact, a good and
fair transfer policy serves as a guide-
post to the manager in affecting
transfers as and when required in the
overall interest of the organisation.
A good transfer policy should satisfy the
following requirements:

1. Specify the circumstances under which

transfers will be made. These should be in
writing and should be communicated to the
employees. For example, defence personnel and
government employees are subjected to transfer
once in three years. The employees in these
organisations know when they are due for a
transfer and are prepared for it.
2. Specify the basis for transfer i.e., whether transfer
will be made on the basis of seniority or skill and
competency or on any other basis.

3. Decide the authority which would handle transfers.

4. Intimate the fact of transfer to the person

concerned well in advance.

5. Specify the jobs to which transfers will be made

and duties and salary on assumption of new jobs
should also be clarified.

6. Clarify whether transfer is permanent or

temporary.
TYPES :

Employee transfers may be classified into following types:

1. Production Transfer:
Such transfers are made when labour requirements in one
division or branch is declining. The surplus employees from
such division are transferred to those divisions or branches
where there is shortage of employees. Such transfers help
avoid lay off and stabilize employment.
2. Remedial Transfer:
Such transfers are affected to correct the wrong selection and
placement of employees. A wrongly placed employee is
transferred to more suitable job. Such transfers protect the
interest of the employee.
3. Replacement Transfer:
Replacement transfers are similar to production transfers in
their inherent, i.e. to avoid layoffs. Replacement transfers are
affected when labour requirements are declining and are
designed to replace a new employee by an employee who has
been in the organisation for a sufficiently long time. The
purpose of these transfers is to retain long service employees in
the organisation and also give them some relief from the heavy
pressure of work.
4. Versatility Transfer:
These transfers are also known as ‘job rotation? In such
transfers, employees are made move from one job to another to
gain varied and broader experience of work. It benefits both the
employee and organisation. It reduces boredom and monotony
and gives job enrichment to the employee. Also, employees’
versatility can be utilized by the organisation as and when
needed.
PROMOTION :

Promotion is vertical movement of an employee

within the organisation. In other words, promotion
refers to the upward movement of an employee from
one job to another higher one, with increase in salary,
status and responsibilities. Promotion may be
temporary or permanent, depending upon the needs
of the organisation.
Types of Promotion:

Promotion given to employees in an

organisation can be classified into three
types:

1. Horizontal promotion:
When an employee is shifted in the same
category, it is called ‘horizontal promotion’. A
junior clerk promoted to senior clerk is such an
example. It is important to note that such
promotion may take place when an employee
shifts within the same department, from one
department to other or from one plant to
another plant.
2. Vertical Promotion:
This is the kind of promotion when an employee is promoted from a
lower category to lower category involving increase in salary, status,
authority and responsibility. Generally, promotion means ‘vertical
promotion

PURPOSE
1. To recognize an employee’s skill and
knowledge and utilize it to improve the
organisational effectiveness.

2. To reward and motivate employees to

higher productivity.

3. To develop competitive spirit and inculcate

the zeal in the employees to acquire skill,
knowledge etc.

4. To promote employees satisfaction and

boost their morale.